Morning Call For Friday, July 14
OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU17 -0.04%) this morning are down -0.03% ahead of data on U.S. consumer prices and industrial production. Losses were limited with JPMorgan Chase up nearly 1% in pre-market trading ahead of its quarterly earnings results due this morning. European stocks are up +0.09%, led by gains in energy stocks with Aug WTI crude oil (CLQ17 +0.89%) up +0.89%. Mining companies were higher as well as Sep CPOMEX copper (HGU17 +0.41%) climbed +0.23% on signs of tighter supplies after LME copper inventories fell -4,925 MT to 313,300 MT, a 1-1/2 week low. Asian stocks settled mostly higher: Japan +0.09%, Hong Kong +0.16%, China +0.13%, Taiwan -0.16%, Australia +0.49%, Singapore +1.60%, South Korea +0.32%, India -0.05%.
The dollar index (DXY00 -0.08%) is down -0.04%. EUR/USD (^EURUSD) is up +0.15%. USD/JPY (^USDJPY) is down -0.08%.
Sep 10-year T-note prices (ZNU17 +0.09%) are up +2.5 ticks.
Reuters reports that three people familiar with the discussion said the ECB is wary of putting an end-date on its QE program and would rather keep its asset purchases open-ended to retain flexibility if the economic outlook were to sour.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Jun CPI (expected +0.1% m/m and +1.7% y/y, May -0.1% m/m and +1.9% y/y) and Jun CPI ex food & energy (expected +0.2% m/m and +1.7% y/y, May +0.1% m/m and +1.7% y/y), (2) Jun retail sales (expected +0.1% and +0.2% ex autos, May -0.3% and -0.3% ex autos), (3) Jun industrial production (expected +0.3%, May unch), (4) Dallas Fed President Robert Kaplan (voter) speaks at a conference on the Federal Reserve and monetary policy hosted by the Center for Economic Studies of the Private Sector in Mexico City, (5) preliminary-Jul University of Michigan U.S. consumer sentiment index (expected -0.1 to 95.0, Jun -2.0 to 95.1), (6) May business inventories expected +0.3%, Apr -0.2%.
Notable Russell 1000 earnings reports today include: Citigroup (consensus $1.21), JPMorgan Chase (1.58), Wells Fargo (1.01), First Horizon National (0.26), PNC Financial (2.02), First Republic Bank (1.09).
U.S. IPO's scheduled to price today: none.
Equity conferences this week: none.
OVERNIGHT U.S. STOCK MOVERS
Boeing (BA -0.10%) was upgraded to 'Overweight' rom 'Neutral' at JPMorgan Chase with a price target of $240.
Wal-Mart (WMT +1.50%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a price target of $84.
Alliance Data Systems (ADS +1.65%) was initiated with a 'Buy' recommendation at Argus Research with a 12-month target price of $309.
GGP Inc (GGP +1.78%) was initiated with a 'Buy' rating at Stifel with a 12-month target price of $27.
Orion Engineered Carbons SA (OEC +0.24%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a target price of $25.
Mylan NV (MYL +1.22%) gained almost 2% in after-hours trading after it announced the FDA's Oncologic Drugs Advisory Committee recommended approval of its MYL-14010, a proposed biosimilar to Roche's Herceptin cancer drug, for the treatment of breast cancer.
CyberArk Software Ltd (CYBR +1.11%) tumbled over 18% in after-hours trading after it reported Q2 preliminary revenue of $57 million-$57.5 million, below previous guidance of $61 million-$62 million, and weaker than consensus of $61.9 million. FireEye (FEYE +0.06%) slid over 3%, Fortinet (FTNT +1.44%) dropped nearly 3% and Palo Alto Networks (PANW +1.16%) lost nearly 2% after CyberArk reported its weaker-than-expected Q2 results.
MiMedx Group (MDXG -3.28%) rose almost 4% in after-hours trading after it reported Q2 preliminary revenue of $76.4 million, above an April 28 view of $73.5 million-$75 million and higher than consensus of $74.2 million.
Juno Therapeutics (JUNO +0.11%) lost almost 2% in after-hours trading after 7 million shares of its stock were being offered via Morgan Stanley.
Consolidated Communications Holdings (CNSL -1.92%) fell over 2% in after-hours trading after 3.7 million shares of its stock were being offered via Morgan Stanley.
A10 Networks (ATEN +0.37%) slumped over 15% in after-hours trading after it lowered guidance on Q2 revenue to $52.5 million-$53.5 million from an April 27 estimate of $62 million-$64 million, well below consensus of $62.8 million.
Sangamo Therapeutics (SGMO +2.70%) climbed almost 4% in after-hours trading after the FDA awarded fast track designation for its SB-318 and SB-913 for the treatment of Mucopolysaccharidosis Type 1 and Type 2.
BioLife Solutions (BLFS +8.68%) jumped over 10% in after-hours trading after it received approval for its Invossa cell and gene therapy for degenerative arthritis from the Korea Ministry of Food and Drug Safety.
ClearSign Combustion (CLIR -2.70%) surged 25% in after-hours trading after it received an order from a 'Supermajor' oil company to qualify its Duplex combustion technology as a precursor to an installation at a major oil refinery.
MARKET COMMENTS
Sep E-mini S&Ps (ESU17 -0.04%) this morning are down -0.75 of a point (-0.03%). Thursday's closes: S&P 500 +0.19%, Dow Jones +0.10%, Nasdaq +0.25%. The S&P 500 on Thursday rose to a 2-week high and closed higher on signs of strength in the global economy after China Jun exports rose +11.3% y/y, stronger than expectations of +8.9% y/y. Stocks were also boosted by slack producer price pressures after the U.S. Jun PPI ex food & energy rose +0.1% m/m and +1.9% y/y, weaker than expectations of +0.2% m/m and +2.0% y/y. Energy stocks were boosted by a +1.30% rally in crude oil.
Sep 10-year T-notes (ZNU17 +0.09%) this morning are up +2.5 ticks. Thursday's closes: TYU7 -3.50, FVU7 -1.50. Sep 10-year T-notes on Thursday closed lower on supply pressures as the Treasury auctioned $12 billion of 30-year T-bonds on Thursday and by the rally in the S&P 500 to a 2-week high, which reduced the safe-haven demand for T-notes.
The dollar index (DXY00 -0.08%) this morning is down -0.04 (-0.04%). EUR/USD (^EURUSD) is up +0.0017 (+0.15%) and USD/JPY (^USDJPY) is down -0.09 (-0.08%). Thursday's closes: Dollar index +0.012 (+0.01%), EUR/USD -0.0014 (-0.12%), USD/JPY +0.11 (+0.10%). The dollar index on Thursday recovered from a 9-1/4 month low and closed higher on comments from Fed Chair Yellen who said that "nothing" suggests the expansion will end anytime soon and an increase in T-note yields, which boosts the dollar's interest rate differentials.
Aug WTI crude oil prices (CLQ17 +0.89%) this morning are up +41 cents (+0.89%) and Aug gasoline (RBQ17 +1.02%) is +0.0.0149 (+0.98%). Thursday's closes: Aug crude +0.59 (+1.30%), Aug gasoline +0.0053 (+0.35%). Aug crude oil and gasoline on Thursday closed higher on carry-over support from Wednesday's EIA data that showed a -7.56 million bbl decline in EIA crude inventories to a 5-month low. Crude oil prices were also boosted by signs of strength in the global economy that is positive for fuel demand after China Jun exports and imports both rose more than expected.
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Disclosure: None.